Friday, May 05, 2017

A few comments from Steven Kopits of Princeton Energy Advisors LLC on May 5, 2017:

• Total US oil rigs added 6 to 703, all of it in the Permian

• US horizontal oil rigs were up 6 to 598, tied for the second smallest gain since late January

• Morgan Stanley, among other bank and sector analysts, reassures us that OPEC production cuts should finally become visible in the next few weeks

• The market isn’t buying it, though – Art Berman issued a note entitled ‘Oil Prices Plunge to Where They Should Be’. Given the relatively strong performance of the shale operators reporting quarterly results this week, he might be right.